State’s money woes won’t affect Morganza project

Other local projects could be in ‘limbo.’

Jeremy AlfordCapitol Correspondent

Published: Saturday, February 9, 2013 at 6:01 a.m.

Last Modified: Saturday, February 9, 2013 at 11:00 p.m.

BATON ROUGE — Despite concerns that the state may be running out of money for ongoing capital construction, obligations already made for the Morganza-to-the-Gulf hurricane-protection project will be protected, said a senior official with the Division of Administration.

Uncertainty lingers, however, for the other projects in Terrebonne and Lafourche parishes that are part of the state’s annual capital outlay bill.

Lawmakers learned last week that the state is $22 million away from crashing into its $605 million debt ceiling, which is problematic for the construction program because it relies on a borrowing scheme in which bonds are sold to investors.

With few realistic options for paying down a substantial existing debt and with hundreds of capital projects in various stages of development, some have suggested raising the debt ceiling, said Rep. Gordon Dove, R-Houma, who has not taken a position.

“No one really likes the idea of lifting the ceiling,” he said. “Then again, we can’t stop the progress of our capital projects. This has really caught everyone off-guard.”

Following last year’s regular session, more than $90 million worth of local projects were approved by lawmakers.

That does not mean the Terrebonne-Lafourche area will see all of those projects; Gov. Bobby Jindal’s administration selects eligible projects from the list endorsed by lawmakers and sends them to the state Bond Commission for final approval.

Few projects make it through the process, but one of the longest-running locally is Morganza-to-the-Gulf, a massive system of levees, floodgates and other flood-control measures meant to protect Terrebonne and parts of Lafourche from up to a Category 3 hurricane.

With levees towering more than 26 feet high and the proposed system stretching from U.S. 90 in Gibson to La. 1 in Lockport, the projected cost is nearly $13 billion.

Jindal has been the highest-profile supporter of the project. He gives regular speeches on the benefits of the project, which the White House has created financial roadblocks for, and has pledged more than $200 million in capital-outlay money to date.

“We will continue to move forward on what is the largest hurricane-protection project ever undertaken by state and local governments,” said Michael DiResto, assistant commissioner for policy and communications in the Division of Administration.

More directly, DiResto said Morganza’s money lines are secure, previously budgeted amounts will not be decreased, and the project will not be affected by the closing in of the debt ceiling.

While Morganza is the largest capital project in Terrebonne and Lafourche parishes in the program, it is not the only one.

For example, L.E. Fletcher Technical Community College has roughly $9 million budgeted for a new building and petroleum technology program.

<p>BATON ROUGE — Despite concerns that the state may be running out of money for ongoing capital construction, obligations already made for the Morganza-to-the-Gulf hurricane-protection project will be protected, said a senior official with the Division of Administration.</p><p>Uncertainty lingers, however, for the other projects in Terrebonne and Lafourche parishes that are part of the state's annual capital outlay bill. </p><p>Lawmakers learned last week that the state is $22 million away from crashing into its $605 million debt ceiling, which is problematic for the construction program because it relies on a borrowing scheme in which bonds are sold to investors. </p><p>With few realistic options for paying down a substantial existing debt and with hundreds of capital projects in various stages of development, some have suggested raising the debt ceiling, said Rep. Gordon Dove, R-Houma, who has not taken a position.</p><p>“No one really likes the idea of lifting the ceiling,” he said. “Then again, we can't stop the progress of our capital projects. This has really caught everyone off-guard.” </p><p>Following last year's regular session, more than $90 million worth of local projects were approved by lawmakers. </p><p>That does not mean the Terrebonne-Lafourche area will see all of those projects; Gov. Bobby Jindal's administration selects eligible projects from the list endorsed by lawmakers and sends them to the state Bond Commission for final approval. </p><p>Few projects make it through the process, but one of the longest-running locally is Morganza-to-the-Gulf, a massive system of levees, floodgates and other flood-control measures meant to protect Terrebonne and parts of Lafourche from up to a Category 3 hurricane.</p><p>With levees towering more than 26 feet high and the proposed system stretching from U.S. 90 in Gibson to La. 1 in Lockport, the projected cost is nearly $13 billion. </p><p>Jindal has been the highest-profile supporter of the project. He gives regular speeches on the benefits of the project, which the White House has created financial roadblocks for, and has pledged more than $200 million in capital-outlay money to date.</p><p>“We will continue to move forward on what is the largest hurricane-protection project ever undertaken by state and local governments,” said Michael DiResto, assistant commissioner for policy and communications in the Division of Administration.</p><p>More directly, DiResto said Morganza's money lines are secure, previously budgeted amounts will not be decreased, and the project will not be affected by the closing in of the debt ceiling. </p><p>While Morganza is the largest capital project in Terrebonne and Lafourche parishes in the program, it is not the only one. </p><p>For example, L.E. Fletcher Technical Community College has roughly $9 million budgeted for a new building and petroleum technology program. </p><p>Also included is:</p><p>n $1 million for the Houma Navigation Canal.</p><p>n $570,000 for elevator upgrades at Leonard J. Chabert Medical Center.</p><p>n $75,000 for E.D. White Historic Site improvements.</p><p>n $1 million for the Company Canal Pump Station.</p><p>n $250,000 to replace the bridge on Tiger Drive in Thibodaux.</p><p>n $375,000 for the South Louisiana Development Council's Center for Economic Growth and Technology. </p><p>Dove, who said administration officials also reaffirmed protection for Morganza's money to him, added that the debt ceiling “puts everything else in limbo.”</p><p>The administration has not yet recommended a formal plan for addressing the debt ceiling and the ongoing capital projects, but it has already ruled out proposing an increase in the cap.</p><p>“We will live within our means and look for opportunities to achieve savings so that capital outlay projects can continue to move forward,” DiResto said. </p><p>Jeremy Alford can be reached at</p><p>jeremy@jeremyalford.com.</p>